A Penny Saved Sends SIRI Upward
Perhaps it is being read as a sign that SIRIUS XM Radio is indeed going to cut costs, and scale metrics. SIRIUS XM Radio announced today that Sirius, as a stand alone company beat the streets estimates by a penny. The company reported a loss of 6 cents per share vs. street expectations of a 7 cent loss.
While losses are never anything to celebrate, the financials of Sirius’ second quarter would seem to indicate that there is light at the end of the tunnel, and that with merger synergies happening out of the box, that the company could have a rosy future faster than some anticipate.
The company saw revenues rise by 25% in combination with subscriptions rising 25%. Satellite radio is finally getting to the point where new additions seem to be adding to the bottom line, and costs seem to be not only scaling, but under control.
What does the future hold? Karmazin will likely speak a bit to that in the conference call at 8:00 AM EST.
Position – Long SIRI
That sounds familiar, thats right I know I read about new revenues from new subs going to the bottom line before:
August 6th, 2008 at 2:53 pm john Says:
Leroy, do you look at the metrics at all. Have you seen how the last few quarters of revenue gains from new subscriber has gone to the bottom line. Here is an example SIRI for 2007 had about 550 million in loss. Almost all cost ether stay the same or went down, or went up a small amount compared to the revenue gained. So lets say they get 1.4 to 1.5 million in 2008 and another 1.5 in 2009 and cost minus CAPEX go up the same % as to revenue as in 2007. That gives them 300 million (free of cost) extra in 2009 compared to 2007, to come off the 550 million loss in 2007. That leaves 250 million left. Now thats on a stand along basis. It is also a quick estimate off the top of my head
Same old story for Mel and the boyz! Have been long on SIRI for about 2 1/2 years. Nice to see that the big picture is looking better but………..what the hell have they been doing for the last 18 month’s? He should have came out swinging today! New products! Marketing! GUIDANCE! Everyone already knew the numbers…………….BIG DEAL! They should have had option A plan and option B plan ready to go in case the merger was denied! Instead, we are just in the dark as usual WAITING for something to happen. Wall Street is going to destroy every retail shareholder because of what has happened in the last 18 month’s. We needed our CEO to defend us and go on the attack not just tell us things will be fine!
Very upset with the conference call this morning. Hoping the street doesn’t react to the lack of forward implementation and guidance (or lack thereof) from Mel. Subs are great and growth is great but I don’t believe that’s what the street really wanted to hear.
Sorry but it’s just my initial reaction.
LONG
Finally an image with a large enough pixel count to begin my counterfeiting operation…*print*
D Says,
I think you’ll get what you are looking for after the Labor Day weekend. They will likely announce some of the cross content options like Howard Stern and a few other channels that will be immediately available on any radio.
They would have had a chance to really dig into XM’s books, would have made the next level of managerial changes and implemented a 3mo, 6mo & 1 year plan that they will lay out for us.
In addition, the new hardware product offereings, functionality and timing.
With this type of synergies that are already under way and are likely conservative, I am surprised that the stock can’t even hold the 1.50 level.
Cramer flip flopping again today and now more positive about the stock after he buried shareholders.